Head to Head Contrast: Innospec (IOSP) vs. Its Competitors

Innospec (NASDAQ:IOSP) is one of 296 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its peers? We will compare Innospec to similar companies based on the strength of its analyst recommendations, dividends, earnings, valuation, institutional ownership, profitability and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Innospec and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innospec	1	1	0	0	1.50
Innospec Competitors	3272	12238	14147	520	2.39

As a group, “Chemicals” companies have a potential upside of 6.71%. Given Innospec’s peers stronger consensus rating and higher possible upside, analysts plainly believe Innospec has less favorable growth aspects than its peers.

Dividends

Innospec pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Innospec pays out 32.5% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.0% and pay out 101.2% of their earnings in the form of a dividend. Innospec has raised its dividend for 11 consecutive years.

Earnings & Valuation

This table compares Innospec and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innospec	$1.78 billion	$116.60 million	13.95
Innospec Competitors	$7.96 billion	$229.42 million	20.21

Innospec’s peers have higher revenue and earnings than Innospec. Innospec is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Innospec has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Innospec’s peers have a beta of 0.94, indicating that their average share price is 6% less volatile than the S&P 500.

Profitability

This table compares Innospec and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innospec	7.49%	9.36%	6.90%
Innospec Competitors	-54.07%	-0.31%	-1.28%

Insider & Institutional Ownership

96.6% of Innospec shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 1.4% of Innospec shares are held by insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Innospec peers beat Innospec on 10 of the 15 factors compared.

About Innospec

Innospec Inc. is a global specialty chemicals company that develops and manufactures products for customers in the fuels, oilfield and performance chemicals markets. Its Fuel Specialties business supplies additives for fuels and lubricants, while its Oilfield Services business provides chemical products and services used in oil and gas operations. Through its Performance Chemicals business, Innospec makes specialty ingredients for applications including personal care, home care and agriculture. Its products are used by industrial and consumer-products manufacturers around the world.